ANNALY CAPITAL MANAGEMENT INCNLY

ANNALY CAPITAL MANAGEMENT INC Leases Disclosure

10-KFiled Feb 12, 20262 min read
20. LEASE COMMITMENTS AND CONTINGENCIES
The Company’s operating leases are primarily comprised of corporate office leases with remaining lease terms of approximately two years and sixteen years. The corporate office leases include options to extend for up to five years, however the extension terms were not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the years ended December 31, 2025, 2024 and 2023 were $5.1 million, $3.3 million, and $3.3 million, respectively.
Supplemental information related to leases as of and for the year ended December 31, 2025 was as follows:
Operating LeasesClassificationDecember 31, 2025
Assets(dollars in thousands)
Operating lease right-of-use assetsOther assets$26,509 
Liabilities
Operating lease liabilities (1)
Other liabilities$33,127 
Lease term and discount rate
Weighted average remaining lease term16.2 years
Weighted average discount rate (1)
7.0%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$3,149 
(1) For the Company’s leases that do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.

The following table provides details related to maturities of lease liabilities:
Maturity of Lease Liabilities
Years ended December 31,(dollars in thousands)
2026$261 
20272,503 
20283,854 
20293,831 
Later years52,041 
Total lease payments$62,490 
Less: imputed interest29,363 
Present value of lease liabilities$33,127 

Contingencies
From time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial statements. There were no material contingencies at December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 14, 2020
2018Feb 15, 2019
2016Feb 23, 2017
2015Feb 26, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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